REDS is a Central California based, second generation family owned and operated company that has been committed to developing high quality housing communities that create and maintain value for residents, investors, and local communities for over 30 years. Throughout its history, REDS has developed and maintained standards of excellence in each of its fields of operation, serving a “triple bottom line” of community service, environmental wellness, and economic success in every project. The company and its employees continually embrace new challenges in terms of finance, development, construction and management options for every project they undertake. It is this mentality that has enabled REDS to develop a diverse and outstanding track record in every one of its professional capacities, proving that new experiences breed strength and success.
Real Estate Development Services (REDS) was formed in 1985 to provide industry-leading finance and development consulting services with an incomparable commitment to the value of long-term relationships. REDS services include development strategy and implementation, financial analysis and execution, construction oversight and asset management all with a commitment to provide the highest quality service to clients and partners. The REDS core strategy of service-oriented relationship building has led to extensive long-term relationships with industry partners including tax credit syndicators, tax advisors, attorneys, lenders, financial institutions and builders, all experts in turning multi-family housing deals into reality. Access to these resources provides a unique value to REDS clients with the flexibility, adaptability and creative problem solving abilities drawn from some of the best and brightest partners in the business.
REDS has accrued a prodigious knowledge of construction and debt financing during its years of operation, and has developed a highly specialized business in affordable and multi housing finance. By examining new and changing possibilities for the funding of each individual project, REDS has developed multiple skill sets to handle both short and long-term financing. Since its inception, REDS has completed over $760 million in total development financing in the construction and rehabilitation of over 7,100 rental units, of which 3,966 were new construction. This includes approximately $120 million in soft money from city governments, federal funds and housing authority participation in addition to multiple successes with CDBG Funds, HOME Funds from both City and CHDO programs, Housing Set-Asides from local Redevelopment Agencies, Tax Increment Financing, MHP Funds, HUD Mixed-Finance and the HUD Section 108 Loan Program. REDS has successfully completed three Rental Assistance Demonstration (RAD) projects which consisted of substantial rehabilitation of several scattered site Public Housing properties owned and operated by Fresno Housing Authority. REDS has also completed numerous mixed-income and affordable projects through CalHFA (formerly CHFA) financing programs, in communities as large as Fresno and Bakersfield, and as small as Coalinga. REDS has been awarded approximately $267 million in Low Income Housing Tax Credits (LIHTC) through the California Tax Credit Allocation Committee (CTCAC) and financed over $181 million in Tax Exempt Bond Debt through the California Debt Limit Allocation Committee (CDLAC) since 1990. The strength and adaptability of REDS’ financing programs are both evidenced and reinforced by its long-standing relationships with core financial partners such as Hunt Capital Partners (and its predecessors, Centerline Capital Group, Charter Mac and Related Capital Company) who have been involved in some twenty-six REDS projects representing over $100 million in equity. REDS has mastered the use of both 9% and 4% Tax Credit programs, representing total tax credit and bond allocations of over $448 million.
The skill and ingenuity demonstrated by REDS’ financing abilities are matched by the company’s development expertise. Since 1985, REDS has successfully interfaced with over thirty city governments in fourteen counties. In developing over 55 rental communities, REDS has faced a unique combination of social conditions and environmental concerns for each property. The REDS team has successfully navigated through issues such as endangered species mitigation, obtaining 401 and 404 permits from the Army Corp of Engineers for wetlands preservation, managing extensive EIR processes working with coastal communities for project approval in water sensitive coastal regions and most recently working with the State of California to approve RDA funds committed as RDA’s were dissolved. This has developed very unique analytical skills and negotiating expertise, providing our clients with a dedicated team that is capable of isolating and mitigating otherwise very difficult development obstacles.
The success of REDS’ development efforts can be largely attributed to the company’s skill in assessing the diverse needs of every market that it enters. From high-end market rate assisted living facilities and market-rate multi-family housing to affordable family-focused communities and affordable seniors housing, REDS is able to tailor a specific solution to meet any community’s housing needs. The concerns of many communities and interested parties are answered by the attention and care that REDS demonstrates in the ownership and management of each of its properties in the face of social, political and practical challenges. Whether building strategies to end crime on acquired properties or facing the challenges of running an assisted living community for seniors, REDS ensures that these solutions are crafted and implemented as part of the development process rather than as an afterthought.
REDS’ standards of excellence are also apparent in terms of its construction history and current practices. Even when faced with snowy conditions in the High Sierra, unseasonable flooding on California’s Central Coast, or the extreme weather conditions of Northern California rainforests or Southern California deserts, REDS’ construction partner continues to deliver project after project on time and within budget. Through careful and direct management, REDS is able to operate successfully in geographically and politically diverse conditions. REDS has been able to meet specific building requirements for every city in which it has operated, including the integration of special construction practices in environmentally sensitive regions. REDS has developed expertise in green building and energy efficiency technologies tailored to the requirements of multi-family construction and is able to advise clients based on the success of past applications of these technologies in the field. This ingenuity, consistency and quality have earned REDS’ communities a reputation for excellence.
Lease-Up and Permanent Debt Conversions
REDS has significant experience in the area of lease-up and conversions. With over 55 projects completed, REDS has taken the primary responsibility to identify the property management firm and develop budgets, marketing plans, and lease-up schedules. Once REDS develops those plans and schedules, REDS works to accomplish the lease-up according to the parameters of the financial model and the lender’s underwriting requirements. REDS takes a primary role in working together with the property management firm as well as overseeing and supervising their work. Furthermore, REDS has successfully completed permanent finacing conversions in every project in its 30-year history. The conversion process is the sole responsibility of REDS, and it has demonstrated its commitment to success by never missing a conversion and always converting for the original amount specified. REDS has mastered both the lease-up and conversion process given its extensive experience.